Social trust in business and its socioeconomic effects in Korea

.

Chapter 8 in Social Trust and Economic Development, 2019, pp 251-290 from Edward Elgar Publishing

Abstract: Chapter 8 examines social trust in business as well as its determinants, effects, and enhancement in Korea. Trust in business, which affects the economy and society through various channels, is seriously low in Korea. The Korean business sector has developed two distinctive groups of enterprises: a large number of SMEs and a limited number of conglomerates (chaebol). SMEs have stagnated over time, while chaebols have expanded and diversified through the financial incentives and institutionalised privileges provided by the government as part of its industrial policy. Chaebols have become the dominant economic force and were a critical culprit of the1997 crisis, after which they were forced to undertake reforms. The main causes of low trust in business include: economic power concentration in chaebols, poor corporate governance, unfair chaebol-SMEs relationships, and business corruption. To prevent business corruption, illicit intra-group transactions of chaebols should be prohibited. The most critical elements for raising trust in business are a strong political will and public support.

Keywords: Asian Studies; Business and Management; Economics and Finance (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/9781784719593/chapter08.xhtml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:16629_8

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().